PROG (PRG) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenues rose 6.6% year-over-year to $684.1 million, with net earnings of $34.7 million and non-GAAP EPS of $0.90, both above guidance.

• Adjusted EBITDA was $70.3 million; diluted EPS was $0.83, and net earnings grew 58% year-over-year.

• Four Technologies achieved 145.7% GMV growth and its first quarter of positive adjusted EBITDA.

• Progressive Leasing's GMV declined 4.0% due to the loss of a major retail partner, but other segments showed growth.

• The company faced macroeconomic headwinds, including inflation, higher cost of living, and a challenging retail environment, but maintained strong profitability and cash flow.

Financial highlights

• Lease revenues and fees were $651.6 million, up 5% year-over-year; interest and fees on loans receivable were $32.5 million, up 52.6%.

• Adjusted EBITDA was $70.3 million (10.3% margin), down from $72.6 million a year ago.

• Net earnings for Q1 2025 were $34.7 million; cash provided by operating activities was $209.9 million.

• Diluted EPS increased to $0.83 from $0.49 year-over-year; non-GAAP diluted EPS was $0.90, nearly flat year-over-year.

• Ended Q1 with $213.3 million in cash and $600 million in gross debt.

Outlook and guidance

• Full-year 2025 revenue outlook revised to $2.425 billion–$2.5 billion; adjusted EBITDA $245 million–$265 million; non-GAAP EPS $2.90–$3.30.

• Q2 2025 revenue guidance: $575 million–$595 million; adjusted EBITDA: $61 million–$66 million; non-GAAP EPS: $0.75–$0.85.

• Guidance assumes a difficult operating environment, soft demand for consumer durables, and no recession.

• Write-offs are expected to remain within the 6–8% annual targeted range, with Q2 as the high watermark.

• No updates to risk factors from the prior annual report; forward-looking statements caution on potential for material differences due to economic conditions.